All Forum Posts by: Scott P.

I got started by house hacking in a duplex.  So, in general, I like the concept.

I don't think I can evaluate your numbers. It is possible that you would be over paying.  That may be okay or may not be.  It depends on a lot of factors including "the future" which no one can predict.

With that said, when considering if it will cash flow, I would add the rent from one side to the amount I would have to pay to rent elsewhere. Like you said, you have to live somewhere. That total number for your rent plus the other side's rent needs to cover PITI in my opinion.

Gaining landlord experience by housing hacking a duplex seems like a reasonable way to learn, to me.

2/1s are easy to rent in my area.  2/2s are seen as being for roommate situations and are common in college areas.

Yes, I agree that a 3/1 would be harder to rent.  I suspect a 3/1.5 would be a little easier to rent than a 3/1.  Nowadays most 3 bedroom houses would be built with 2 baths.

One of my associates is currently changing a 3/1 into a 3/2 for this very reason.

I think maybe corded mini-blinds have been regulated out of use?

I used to use the $5 corded ones too, even though my lease says that window treatments are by the tenants.  I also never charged tenants for breaking them.

I recently put in my first set of non-corded ones, last November.   I was happy with the corded style and didn't want to change but I admit I like the way they operate.  I like them better but they are more expensive.

Going forward I may stop supplying them but then I risk some tacky tenants putting up a sheet in my lower end units even though the lease says "white or neutral backing only," I think. Or maybe I'll start taking the cost out of their deposit.  I'm not sure but I'll probably need to decide soon...

I'm sorry I can't recommend a substitute but I'll Follow your thread and maybe we can both learn of one...

I recommend you have the tenants put as much as possible in their names.

My tenants pay all utilities and trash.  I believe I'm legally responsible to pay the sewer in my State if they don't pay.  Once in a while I've called to see that the sewer is being paid.

Through the years it's become a little harder to inquire if other utilities are being paid but the only one that ever concerns me is natural gas for units that have natural gas heat.  Utility companies may be less forthcoming nowadays maybe for privacy reasons.  I don't want pipes to freeze if a tenant is not paying for heat.  So when a tenant pays me late, I check in the winter to see if heat is still on.

I've had a few times where tenants in my lowest end property had utilities shut off but only a few times in 20+ years.  Usually when that happens the tenant is late on their bills and the shutoff is "involuntary" for non-payment.  I'm usually tipped off because they also pay the rent late.

Here is a learning point:  I did have one instance where a tenant was current with their bills but shutoff utilities anyway.  This instance caught me by surprise.  It happened because the tenant who had the utilities in his name left the unit but the other tenant stayed in the unit.  I was set up with the utility companies to automatically put utilities back into my name during a voluntary termination since I'd never had a tenant stop utilities unless the tenant was moving.  Since the tenant who left was current with his utility bills, the utility company put the service back into my name.  In that case, I had to pay the bill then get the tenant to pay me back.

I'm sorry to hear about the landscape problems.  I suspect that could be expensive in California.  Also, sorry to hear about needing the deposit for the last month's rent.  These issues bother me when they happen to you - and I don't even know you.  So you know they bother me when they happen to me.

My thoughts on small claims in your area probably wouldn't be helpful because it's probably different than my area.

If I was in your situation, I would document why I kept their deposit and I'd only communicate this via US Mail and I'd do it within the time frame proscribed by law in my area.  Then...you're not going to want to read this...but...I'd drop the rest of the issues and move on.  I'm sure I could get a judgement but getting the tenant to pay is another matter.  Unless the damages are huge or I was taking the problems personally for some reason, I'd spend as little time on these folks as possible and move on.

In the situation you're describing it take me 4 days for a 2 bedroom 1.5 bathroom unit unless I'm replacing floor covering in which case it's usually a full week and maybe almost 2 weeks.

In 4 days, worst case 5 days, I can get a thorough cleaning and painting, inside and out, even removing doors from hinges if needed.

In that time window I can also have a plumber replace a faucet or an electrician replace a bathroom vent fan, minor stuff, if needed.

I've hired contractors to refinish, to make small patch finish repairs, to redo 3 piece tub walls and to completely remove and replace tub shower units. Sometimes the patching for me didn't exactly match the original finish.

I agree with the posters here who are suggesting to try removing the mold and spot patch and refinish, especially since white subway-similar tile is popular at this time.  

With this said, if it's an A property I would totally remove it and put in a new tub and 3 piece surround (or a one piece tub & shower unit if you have access) and I might also do that for a B property.  Note that if you have it removed you might find add'l issues that are currently unseen.

@Jeremy Torres, I don't know all the details but from what I've read here I would not necessarily sell the car if I was if your shoes as long as it was reliable and especially if it is a brand that is known for reliability.  After all, you're probably going to lose money if you sell it.  You've already got it.  So it's possibly better in the long run if you pay it off, save the non-deductible interest on any car loan, then keep it for 10-20 years and/or 200,000 - 400,00 miles.  If I did that I will have gotten my money out of it and not taken a depreciation loss just to pass it on to the other guy who will then have gotten a good deal on my now used car.

YMMV and the guys saying to sell it are not necessarily wrong.

Congrats on having 15k in savings at age 21!

Since that's still a bit low to buy a 185k as an investor, I'd owner occupy one side (assuming I can live in that area) to have the lowest down payment possible but I'd have a high enough down payment to avoid PMI.

So, this might mean waiting a bit longer and saving a bit more.

I have 2 lease forms, each drawn up by a different attorney in Indiana.  Neither one has been tested in court but I assume they are legal/good.

I think you're asking if Indiana requires Tenants to pay for certain items and Owners to pay for certain items and if it's mandated here for Owner's to cover certain items in general and if those answers vary for SFH and Multi. Those good questions. I'm surprised at myself for never asking them of a lawyer, which is what you should probably do in order to get the answers. There are probably State laws that apply as well as local ordinances in some cities.

Although I'm not 100% sure, I THINK a landlord is required to keep the rental "habitable" which I think includes things like hot water and a heating system but not things like lawn care or air conditioning.  My properties have always been well kept.  So I've never had to look into these issues.

You can definitely have the tenants responsible for paying all utilities in Indiana; however, I believe the landlord/property owner is responsible for the sewer bill if the tenant does not pay it. My first choice is ALWAYS separately metered utilities for each unit. If a home was renovated from a SFR into a Triplex, it may or may not have been converted into separate meters for 3 units. To make a conversion like that requires coordination and approvals from all the utility companies in question and probably even the post office for mail delivery. The utility companies likely include electricity, natural gas, water, and sewer. I have not done a conversion like that but I suspect it is complicated and may not even be possible in some jurisdictions.

I would probably not buy a Triplex with one meter(s) and split utilities.  I haven't included any utilities in my rents i.e. the tenants have always I prefer separately metered properties.  YMMV.  

If this info is informative, plse give me a "vote."  If you'd like to PM me and tell me where the property is, I'll give you more info about it or the area if I can.  (I won't pursue the deal or tell others about it.)

Good luck!